All Forum Posts by: Nicholas Lehman
Nicholas Lehman has started 7 posts and replied 13 times.
Post: Buing a 4plex and trying to decide whether to raise rents....
- Investor
- Anchorage, AK
- Posts 15
- Votes 1
Thanks for your response. In Alaska it seems that rent can be raised with only providing a 30 day written notice. I will most likely be raising the rents to market value when I take ownership.
Post: Buing a 4plex and trying to decide whether to raise rents....
- Investor
- Anchorage, AK
- Posts 15
- Votes 1
Thank you for your response! I will try to answer your questions.
1. Yes 995 is in the range of fair market value for 99501.
2. I would say the unit that is 915 needs a little work but I believe they are paying less because their rent was negotiated after the current owner turned the property over to a property management company.
3. If the tenant did not move out and the rent was raised to 995 I would be surprised but happy that I was now getting market rate without having to invest in renovations.
4. I don't really want the long term tenant to move. I simply don't want to miss out on 300 dollars a month in potential income and therefore about 3600 a year....
Post: Buing a 4plex and trying to decide whether to raise rents....
- Investor
- Anchorage, AK
- Posts 15
- Votes 1
I am new to the real estate game and am currently scheduled to close on my first 4plex in Anchorage Alaska on April 20th. I got approved for an FHA loan so I will be owner occupying one of the units. Currently the units are all fully rented but one of the tenants is supposedly moving out soon. Currently the rents on the 4 units are 995,995,915 and 700. The tenant who pays 700 has lived in her unit for 22 years and it has never been remodeled since it was built in 1976. All four of these units are 1br/1ba with dishwashers and W/D. The rental market in Anchorage is fairly strong but may be in some trouble due to falling oil prices. It has been suggested to me that when I take over the property I should raise the rent on the tenant paying 700 up to 995 or higher. Most likely she will want to move out at that point and I can occupy her unit and work on remodeling it until I move out in hopefully a year or so and then get closer to market rate for her unit and allowing the 4plex to cash flow better. Is raising the rent on the long term tenant the right move? Should I raise all of the other rents slightly by 5 percent or so to reflect increasing property taxes and to improve cash flow?